As Brexit continues to threaten a massive shift in the United Kingdom’s economy, there are a lot of lessons to be learned from previous economic changes that have happened over the years. The biggest lesson to focus on, says Greg Secker, is the fact that a person cannot trust the value of the pound to remain stable during this serious time.
Actions have consequences. When the UK announced Brexit would indeed happen, it caused a significant shift in the economy of Britain, leading to a slowdown in the economy. Money hasn’t been moving around nearly as much as it used to and in the second quarter of 2017, the United Kingdom’s GDP only grew by 0.3 percent. This isn’t a great market signal, showing that for some reason, the country isn’t growing as fast as it could be. To make matters worse, with the idea of a Hard Brexit happening, key cities to the UK’s economy such as Aberdeen and Edinburgh are predicted to take the biggest hit from this Brexit. This would leave the country in a major upheaval and would have a disastrous effect on the economy.
The pound hasn’t been very strong since the announcement of Brexit, causing a serious drop in the value of the pound against the dollar. This means that currency prices have weakened the buying power of the pound. What does this mean for the regular individual? Well, quite frankly, it means that their money won’t go as far as it normally would. This can be extremely problematic for those who have savings, because the weakening of the pound actually lowers the total value of their savings. This is a silent thief because people usually don’t realize the impact that a weak currency will have on their country.
The first problem of a weakening currency is the fact that the government will begin to print or borrow money to circulate it through their economy. When more currency enters into an already existing economic body, it creates a phenomena known as inflation. Inflation reduces the value of currency by causing a rising price of goods. For example, if the government were to print money as a way to combat their currency losing value, inflation might increase by 6%. If this were to happen, the total value of an individual’s money would be reduced by 6%. This can wipe out a traditional style of savings such as a certificate of deposit, leading an individual to just break even. Value of various money holding items tend to rise in the local market but drops in the international market.
The second issue with a weakening currency is that economically right now, the UK is experiencing another type of inflation known as “shrinkflation.” Shrinkflation is relatively straight forward, but is happening across the world. The price of a good remains the same, but the good itself is reduced in size of volume. This can be displayed by a bottle of detergent. If a bottle of detergent cost 1 pound and came with 12 ounces, but due to shrinkflation, the bottle was reduced to 10 ounces, a customer is actually paying more for the same product. So not only will the UK be experiencing a greater degree of inflation, the traditional buying power of the pound is reduced and products are getting smaller, effectively costing more to the consumer.
This economic picture isn’t very good. So what is a citizen of the UK supposed to do during these hard times? Well, for starters, they should prepare as best as they can for the coming economic shifts that will happen should a Hard Brexit occur. They must find some ways to insulate themselves from the economic woes that most people will be forced to deal with as the value of the pound will begin a freefall slowly. Since savings won’t be enough to entirely isolate oneself from the chaos, they will probably need to secure an additional form of income. Savings can be said to be a short term solution for this issue. This would translate to finding a second job. Of course, no one wants to have to work two jobs in order to sustain themselves, which is why we would propose a different type of work: Forex Trading.
Forex trading is a great option because it’s flexible, fun to learn and most importantly, tax free! That’s right! Forex is a 24/7 online market where you aren’t taxed on your profits. This will enable you to take advantage of a currency that is taking a beating on the market and instead makes money off of it. Not only will you keep everything that you make, you will also be able to insulate yourself from the inevitable chaos that comes from a fluctuating currency market. Remember, when currencies are in trouble, traditional investing methods aren’t protected nearly as much as you would like. Investing in stocks, bonds and savings can only keep you safe as long as the currency remains high and valuable.
Greg Secker is a born leader in the world of Forex Trading, entrepreneurship and philanthropy. Already a multi-millionaire by his twenties, Greg Secker spends most of his time working to teach other people how to trade like he did. His passion is to show the world that you don’t have to be a rich mogul in order to get involved in Forex Trading. Rather, he dreams about helping the regular man achieve their own goals in the financial trading industry by teaching them the tricks and secrets that allow professionals to make a buck.
When he’s not working to train others in Forex, Greg Secker likes to spend time e working on his non-profit, the Greg Secker Foundation, where he actively works to improve the quality of life for impoverished people all over the globe. His foundation has assisted countless groups through teaching both leadership development, trading strategies and childhood development programs. He is endeavoring to assist the Philippines to recover from a series of devastating typhoons and tornados that had affected the entire region in 2016. With his Build a House, Build a Home program, he and his team is working diligently to provide housing, education and life skills to the people of the Philippines.
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